IL stamp payment bonds.
From $100. Enter your amount.

A licensed Illinois cigarette distributor can buy tax stamps on a 30-day deferred-payment basis — but the Department of Revenue requires a stamp payment bond standing behind those stamps until the tax is settled. The price is 1% of the bond amount, $100 minimum, and the application collects no credit information; enter the amount the Department set and see your exact price.

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Lets a distributor buy stamps on 30-day deferred payment under the Cigarette Tax Act (35 ILCS 130)

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Amount equals 80% of average monthly tax liability for the prior year, up to a $500,000 cap

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1% of the bond amount, $100 minimum, no credit fields — enter your required bond amount and see your exact price

1% rate$100 minimum premiumNo SSNin the applicationFastoften issued on the spot

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How it works

Apply to filed in one sitting.

No underwriting queue for the standard stamp bond at typical amounts — enter your amount, pay, and file. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the Department set, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

The application collects no credit information and there is no waiting at typical amounts — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with the Department of Revenue

Submit the executed bond to enable deferred stamp purchases on your distributor account. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the stamp payment bond actually covers

Illinois collects cigarette tax through tax stamps that a licensed distributor affixes to each pack. Under the Cigarette Tax Act (35 ILCS 130), a distributor can buy stamps on a 30-day deferred-payment basis rather than paying cash up front — purchasing stamps with a draft payable within 30 days.

Deferring payment means the state is owed tax on stamps already in the distributor's hands, so the Act requires a stamp payment bond. This bond is in addition to the basic distributor financial-responsibility bond, and it is sized to 80% of the distributor's average monthly tax liability for the preceding calendar year, capped at $500,000.

The bond guarantees the deferred tax gets paid. If the distributor fails to settle, the Department can recover against the bond, and if the surety pays, the distributor repays the surety. The Department releases the bond after the distributor stops doing business, files a final return, and clears its liability.

35 ILCS 130 (Cigarette Tax Act)Under the Illinois Cigarette Tax Act (35 ILCS 130), a distributor who buys tax stamps on a 30-day deferred-payment basis must file a stamp payment bond with the Department of Revenue — in addition to the basic distributor bond — equal to 80% of the distributor's average monthly tax liability for the preceding calendar year, or $500,000, whichever is less. The bond may be a surety bond, bank certificate of deposit, or bank letter of credit. Confirm your required amount with the Department of Revenue.

You need this bond if you are

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A licensed cigarette distributor buying tax stamps on deferred 30-day terms

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Setting up deferred stamp payment to avoid paying cash up front for stamps

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Renewing your distributor account and the stamp payment bond is expiring

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Growing volume so the Department recalculates your 80% bond amount

One application, issued on the spot.

Submit the application with the bond amount the Department set — the executed bond is generated instantly at typical amounts, ready to file.

Start the application →

FAQ

Common questions.

How much is the Illinois cigarette stamp payment bond?The price is 1% of the bond amount, $100 minimum — set by the amount you enter, not a credit tier. The amount itself is set by statute — 80% of your average monthly cigarette tax liability for the prior year, capped at $500,000. Enter that figure and your exact price appears at the application.

How is this different from the basic distributor bond?The basic distributor financial-responsibility bond is required to hold the license. This stamp payment bond is an additional bond that lets you buy stamps on 30-day deferred terms instead of paying cash up front.

Is there a credit check?The application collects no credit information — there's no SSN or credit section to fill out. Most applications approve instantly at typical amounts; because this bond can run large (up to $500,000), the biggest amounts may get a quick soft-pull review, which never affects your credit score.

Can I use a CD or letter of credit instead?Yes — the Act accepts a surety bond, a bank certificate of deposit, or a bank letter of credit. A surety bond is usually cheapest, since you pay the 1% premium rather than tying up the full amount as collateral.

When is the bond released?The Department releases the bond within about 30 days after you cease business, file a final return, and pay enough to discharge your remaining tax liability.

Related bonds

Other Illinois bonds.

Stamp payment bond, issued today.

From $100. Enter the amount the Department set and file the same day.

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